Chapter 1 Interpreting financial statements Accounting Information provided by 3 annual reports: Balance Sheet Cash-Flow statement Income statement Figure 1 Cash flowproduction cycle (Operating) working capital: movement of cash into inventory Investment: flow from cash into new fixed assets Depreciation: the loss in value of fixed assets ⇒ increase in value of merchandise made + needed for growth Solvency: ability to have cash to buy fixed assets and inventory (outflow cash) Financial
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Financial Statements Paper Part I Student ACC 497 8.17.2015 Professor Financial Statement Paper Part I: Home Depot For employees, creditors, and investors, financial statements are essential. They provide insight and information regarding a company’s overall performance. The Securities and Exchange Commission (SEC) requires that all publicly traded companies release their financial statements on a regular basis – quarterly and annually. The annual report consists of three main reports:
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CHAPTER 1 The correct answer for each question is indicated by a . | | | | 1 | INCORRECT | | A secondary market transaction can occur in either a dealer market or an auction market. | | | | | A) | True | | | | | | B) | False | | | | Feedback: True | | | | 2 | CORRECT | | Control of a firm ultimately rests with the stockholders. | | | | | A) | True | | | | | | B) | False | | | | Feedback: True | | | | 3 |
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One of the most important documents or tools for an accountant is a balance sheet. A balance sheet is also referred to as a “statement of financial position”. The balance sheet is represents a companies financial situation at the end of the year. A balance sheet is basically a document that shows the breakdown of the entire companies, profits, losses, investments, and expenses with variable branches of each of the categories. A balance sheet is divided in three sections assets, liability and shareholder
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legislators, government officials, contributors to nonprofits, suppliers and customers. 4. Business owners and managers use accounting information to help answer questions such as: What resources does an organization own? What debts are owed? How much income is earned? Are expenses reasonable for the level of sales? Are customers’ accounts being promptly collected? 5. Service businesses include: Standard and Poor’s, Dun & Bradstreet, Merrill Lynch, Southwest Airlines, CitiCorp, Humana, Charles Schwab
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Cash Flow Statement Definitions A financial statement that reflects the inflow of revenue verses the outflow of expenses resulting from operating, investing and financing activities during a specific time period. Cash flow statements and projections express a business's results or plans in terms of cash in and out of the business, without adjusting for accrued revenues and expenses. The cash flow statement doesn't show whether the business will be profitable, but it does show the cash position
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1 General-purpose financial statements are the product of a. financial accounting. b. managerial accounting. c. both financial and managerial accounting. d. neither financial nor managerial accounting 2 . Users of financial reports include all of the following except a. creditors. b. government agencies. c. unions. d. All of these are users. 3 . Which of the following statements is not an objective of financial reporting? a. Provide
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Candela Corporation has volatile cash flow from operating activities (CFO) over the three years from 2002 to 2004. The firm experienced a net loss in 2002, but has since recorded net profits in 2003 and 2004. CFO was negative and much worse than the net loss in 2002. In 2003, CFO was positive and greater than net income, but in 2004, CFO took a plunge, though still positive, was much less than net income. Accounts receivable grew each year and this has reduced CFO especially in 2002 and 2004
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A REPORT OF PROJECT ON FINANCIAL STATEMENT ANALYSIS IN MANGALORE REFINARY AND PETROCHEMICALS LIMITED Under the guidance of Internal Guide Ms.Ramya.R Management and commerce department Amrita School of Arts and Sciences Mysore Extrnal Guide Alpana Dosaj Finance Department Mangalore Refinery and Petrochemicals Limited Mangalore SUBMITTED TO MANAGEMENT AND COMMERCE DEPARTMENT AMRITA SCHOOL OF ARTS AND SCIENCES MYSORE Submitted By: D Ravi Thirumaleshwara Sharma MY.BU.U3BBM09019 BBM 5TH SEM Amrita
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June 5, 2011 Axia College of University of Phoenix Summary Analysis 2004 A $ 2,154,000 net loss was occurred by the Candela Corporation. The accruals method was used to calculate the figure. The non-cash expenses were added back into the statement in order to obtain the proper cash flows. Notional interest on stock warrants and discounted operations were the additions that are the most important. In respect to the important additions there are also important subtractions as well and those subtractions
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